Industry Research

Limousine & Chauffeur’s First Decade Marked by Industry Milestones

There has been a remarkable process of growth and change in the limousine industry since Limousine & Chauffer Magazine was first published in March 1983. Landmark events have occurred. Industry leaders have emerged. Regulations have appeared at every level of government. And today’s limousine industry bears little resemblance to the way livery service was provided ten years ago.

The following overview of the past decade highlights some of the prominent people and events that shaped the industry.

Magazine has 42 pages and carries ads from nine coachbuilders—most of which stretch limousines less than 50 inches. Ultra Limousine builds the longest limousine conversion on the market at 63 inches. Dornan Uniforms and American Custom Coachworks begin ten consecutive years of advertising in L&C.

March: L&C carries its first report of a New Jersey operator being ticketed by the New York City Taxi & limousine Commission for operating in Manhattan. One coachbuilder predicts the L.A. Olympics “…will make Los Angeles into another New York because you’re going to be so accustomed to seeing limousines during the Olympics…People are going to make enough money off the Olympics to stay in business.”

May: Wisconsin passes law allowing the consumption of alcoholic beverages in limousines. The Wisconsin Association of Limousine Services, supporters of the bill, estimate legal fees at $2,600 to pass the law.

August: L.A. Olympics fail to produce windfall business for local livery services. New companies fold as limos clog used car lots.

January: National Limousine Association formed at a meeting in Washington D.C. Jeffery L. Berger retained as general counsel. Second annual L&C Operator Survey finds that one out of three livery companies are less than two years old. Fewer than one out of fiver operators use a computer. L&C advises: “The dishwasher is an excellent way to clean wire wheel covers.”

November: First L&C Show in Las Vegas features luncheon speaker Tommy Lasorda.

December: $105,000 Mercedes-Benz limousines are among more than 100 vehicles displayed at the L&C Show in Atlantic City. When asked how to get good TV reception in a limousine, one speaker in Atlantic City replies, “Use a VCR.”

March: Third annual L&C Operator Survey reports the average rate for a stretch limousine at $41 per hour. Forty-one percent of livery companies have been in business less than two years. One out of three operators uses cellular phones.

January: IRS eliminates investment tax credits, L&C interviews Dav-El founder David Klein who predicts, “We used to have hundreds of little rental car companies and now we have hundreds of little rental car companies and now we have National, Hertz, Avis, and Budget. In the future, you’re not going to have so many limousine companies either. You’re going to have a few major limousine companies in every city.”

May: L&C reports, “Black cars are the fastest growing segment of the transportation industry.” Executive Chauffeuring School introduces the industry’s first chauffeur manual. Updated edition still available at 310/325-8042.

June: National Limousine Association hires Wayne J. Smith as executive director. Smith tells members, “If the NLA is not organized into a unified group, regulators will run right over the top of the limousine industry.” L&C estimates limousine sales for 1987 model year at 7,000.

October: Dow Jones Industrial Average drops 508 points in one day triggering widespread cuts in corporate spending and a shift from limousine to sedans.

November: F. Lee Bailey and G. Gordon Liddy speak at L&C Show in Las Vegas. In a meeting with coachbuilders, Lincoln announces formation of limousine design team to develop heavy-duty packages for 1990 Town Car. Inmates at a Nevada prison begin building limousines.

Passing Fancies: Limousine Transportation Dispatch Network (LTD) goes out of business after five years.

1989

January: Lincoln delivers armored limousine to President Reagan and President-elect Bush at a White House ceremony.

February: Convenience store robber hijacks a limousine carrying a bride and her entourage. The robber drops the party off at the church in time for the wedding before going off to gut the limousine’s interior. A photo of the robber taken by the bride helps police close the case.

March: National Limousine Association presents the speakers and workshops at L&C Show in Las Vegas. L&C begins Operator of the Year and Industry Achievement Awards. Tom Young of Fairbanks, AK wins a limousine conversion from National Coach Engineering in a drawing at the show.

May: Lincoln introduces Qualified Vehicle Modifier (QVM) program to recognize approved coachbuilders. Council of Limousine Associations (COLA) formed in conjunction with the NLA to improve communication with regional associations.

June: Internal Revenue Service allows limousine companies in Atlanta to continue classifying chauffeurs as independent contractors after NLA survey shows that this practice is used by a “significant percentage” of the city’s operators.

September: LIMO announces that a 75-inch limousine conversion met all FMVSS standards during a crash test. By using design specifications from the test vehicle, LIMO members certify that their limousines meet FMBSS. LIMO implements seal program to identify limousines built by members.

November: Lincoln selects 14 coachbuilders as founding members of the QVM program. California passes law prohibiting cities from requiring local business licenses from limousine companies based in other cities.

May: NLA hires lobbyist to help end conflict between New York area operators and the T&LC/ L&C survey reports that 53 percent of livery operators are based at home. Fifty-one percent of chauffeurs are classified as independent contractors.

July: NLA president George Jacobs testifies to Congress that independent contractors are a legitimate part of the limousine business. LIMO aggress to co-sponsor the next three L&C Shows with L&C and the NLA.

September: Cadillac introduces redesigned Brougham and renames it Fleetwood. NLA announces agreement with T&LC allowing limousine operators based in New York state, but outside New York City, to operate in the Big Apple with $200 exemption sticker.

Hot Topics: New-look Cadillac Fleetwood. Gas Guzzler.

Passing Fancies: New York City Mayor’s Office proposal of $45,000 limousine medallion is shot down by Advisory Council on Taxi and Limousine Affairs.

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